The initial public offer of Swiggy will open for subscription on November 6 and close on November 8, with anchor investors bidding on November 5.
The online food delivery major will announce the price band on Wednesday that could raise over ₹11,327 crore.
The share float has generated strong interest in the primary market.
According to IPO Watch, Swiggy is commanding a grey market premium (GMP) of ₹130.
The share sale will be a mix of fresh issue of shares and an offer for sale (OFS). The fresh issue component is expected to be of 11.53 crore shares.
In its updated red herring prospectus, which was filed on Monday, the company said OFS will be for 17.50 crore shares that will see around 10 entities divesting part of their stake.
Existing shareholders including Prosus and Tencent are selling a total of 175.1 million shares.
Early investors such as Accel, Elevation Capitaland Norwest Ventures are making up to 35 times in returns on the portion they decided to sell.
On the other hand, SoftBank continues to stay invested, according to PTI.
While further details of the issue that include the lot size will be announced on Wednesday, reports put the IPO price band at ₹371-390 per share.
Swiggy has increased the size of the fresh issue to ₹4,499 crore from ₹3,750 crore in the updated draft red herring prospectus (DRHP).
It is expected Swiggy will be listed on November 13.
It will be the second food delivery company to trade on the bourses after rival Zomato which commands a market capitalisation of ₹2.22 lakh crore.
Swiggy said it will use the proceeds of the fresh issue of shares to invest in its logistics arm Scootsy.
It will also invest in the expansion of its dark store network for the quick commerce business and make lease and licence payments for the dark stores.
The Softbank-backed company, which was last valued at $10.7 billion in January 2022, added that the proceeds will be utilised towards investment in technology and cloud infrastructure, brand marketing and business promotion expenses for enhancing the brand awareness and visibility of its platform.
Swiggy will also fund inorganic growth, though it has not identified any company.
The share sale will be the country’s second-biggest stock offering this year, behind Hyundai Motor India’s ₹27,870 crore IPO earlier this month, which had seen subdued interest from retail investors.
India’s benchmark Nifty 50 index is now down more than 8 per cent from record highs hit on September 27 due to persistent foreign selling.
Meanwhile, the IPO of Shapoorji Pallonji Group’s flagship infrastructure engineering and construction firm Afcons Infrastructure got fully subscribed on the last day on Tuesday and ended with 2.63 times subscription.
With inputs from Reuters & PTI
